Teaching Your Kids About Money

As a bookkeeper I have seen just about every method of saving and spending there is. Everyone has their own way of doing it. But where did they learn how? My mother always tells the story of when I got my first babysitting job at age 12. I took the money I earned and divided it into thirds. I put one third each into a Holiday Savings Account, my regular bank account and into my pocket for spending that week. The following week I took whatever was left in my pocket, added it to what I made and then did my dividing. I was on my way to always having money to spend while still saving. I don’t really remember making that decision to save and I don’t remember being told to do it. I was one of the lucky few who “got it”.

We learn early on in school how to count money but no one really teaches how to handle it. Many kids in today’s instant gratification era seem to think there is an unlimited supply. So, how do we show them how to be responsible with money? I’d like to believe it starts at home, but that is not always the case. Some adults struggle with money management.

I am a merit badge counselor for Personal Management for my son’s Boy Scout troop. This badge is mandatory for the Eagle rank. It is an excellent opportunity for the boys to learn some valuable lessons. Girl Scouts learn money management through cookie sales. Okay, not every kid is a scout. But you can find other ways to teach these skills. Look locally for classes on the subject geared toward kids. Take the class with your child to make it more fun. Set up a bank account for your child so they get familiar with the banking process. There are also some great books to help. I just Googled the subject and found books for kids as young as 3.

Start early. The sooner your child learns about how our monetary system works the better equipped they will be as adults.